Indonesia to promote exports to Japan

JAKARTA (JP): Indonesia is to hold a trade exhibition in the city of Kobe in a bid to boost exports to Japanese markets.

The head of the National Agency for Export Development, Muchtar, said yesterday that about 40 small and medium-scale companies would participate at the Indonesian Solo Exhibition, to be held from Sept. 17 to Sept. 21.

The trade mission is particularly aiming to increase Indonesia's exports to Japan in areas where there are many non- tariff barriers.

"Japan has a really protective market, and we expect to break through with our trade mission," he said.

He said the exhibition would introduce new products to the Japanese market, in addition to showcasing existing export commodities, such as furniture and wood products.

Representatives of the textiles, garment, cosmetics, leather products, footwear, furniture, ceramics, bicycle, and agricultural and fishery industries will make up the bulk of the mission.

Agency's data shows Indonesia's exports to Japan exceeded US$12.88 million last year, accounting for 18.4 percent of the country's total exports.

They included wood products, shrimps, garments, aluminum products, coal, nickel, textiles, furniture, steel, coffee, tuna, and shoes.

Indonesia's exports to Japan have grown by an average of 3.6 percent a year in the last five years.

Muchtar said the sluggish growth was partially caused by the recent depreciation of the yen against the U.S. dollar, and because of the lower competitiveness of Indonesian products.

He acknowledged that the rupiah's slump against the U.S. dollar would improve the competitiveness of the Indonesian exports, but said exporters should not be buoyed by such a situation.

"Our aim is to raise exports, whether the currency depreciates or appreciates," he said. (das)